Bronco High School issues $10 million in bonds on January 1, 2021, that pay interest semi-annually on June 30 and December 31. A portion of the bond amortization schedule appears below:DateCash PaidInterest ExpenseIncrease in Carrying ValueCarrying Value01/01/2021         $8,800,000 06/30/2021$400,000 $440,000 $40,000  8,840,000 12/31/2021 400,000  442,000  42,000  8,882,000 The bonds were issued at:

A. Face amount.
B. A premium.
C. A discount.
D. Cannot be determined from the given information.


Answer: C

Business

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